(European Commission) Euro area’s Economic Sentiment Indicator fell by 1.1% in January to a lower reading of 112.7.
In the EU, the ESI weakened by 1.4 points to 111.6 despite the indexes in both regions remaining generally high.
Employment expectations also edged lower, with the index down 0.2 points to 113.3 in the euro area and down 0.5 points to 113.1 in the EU.
The fall in the sentiment even as Germany’s economy shrank by 0.7% in the fourth quarter of 2021, heightening concerns that it may plunge into recession for another time.
The drop in sentiment happens when companies in the euro area express concerns of coronavirus restrictions, with the region beginning the year with the tightest curbs since May. The economy is also lagging those of the US and the UK amid persistent inflation.
DAX is down -2.06%, EURUSD is down -0.12%.
